GENERAL TERMS AND CONDITIONS OF ČESKÁ SPOŘITELNA, a.s. STAVEBNÍ SPOŘITELNA (ČESKÁ SPOŘITELNA BUILDING SAVINGS BANK)

Dear Clients,

Thank you for choosing Česká spořitelna Building Savings Bank to finance your better home. We believe you will always find our services to be of assistance. Our aim is your lasting satisfaction with our services and your good feeling. Bearing that in mind, we did our best to write this document in a language as clear and comprehensible as possible. You can rely it is not our intention to hide anything from you, to conceal important items of information in footnotes or to diminish them by using small fonts.

The Building Savings Bank's General Terms and Conditions deal with the rules we adhere to in the most typical situations. Yet, if you are confronted with a situation where you do not know what to do, please consult our telephone line given at our website www.burinka.cz where your queries will be readily dealt with.

The current version of the General Terms and Conditions of the Building Savings Bank is available from our headquarters, at our website www.burinka.cz, and at the website of Česká spořitelna www.csas.cz as well as from our authorised sales agents.

We wish you good luck in our personal and professional life and look forward to our successful cooperation.

GENERAL

1. Introduction

1.1. Why is it important to carefully read through contracts and the General Terms and Conditions of the Building Savings Bank?

For your responsible decision, you need to know not only all the information stipulated in the contract you are about to conclude with us, but also the general information that is available in these General Terms and Conditions of the Building Savings Bank.

You will obtain specific information on individual services and transactions or information relating to contracts concluded over the Internet, or otherwise, as the case may be, prior to or at the negotiation of your specific contract.

1.2.What forms the content of the present General Terms and Conditions of the Building Savings Bank and to whom is it intended?

The present General Terms and Conditions of the Building Savings Bank regulate the operation of building savings schemes and related products provided for natural persons and legal entities. Non-entrepreneurial natural entities are further dealt with under relevant legal regulations in the field of consumer protection.

The services will be provided under specific contracts to be concluded between us. Unless we agree otherwise for specific contracts, the latter shall be concluded for an indefinite term.

If, under a specific contract, certain rules differ from those under the present General Terms and Conditions, the wording of the contract shall prevail over the present General Terms and Conditions of the Building Savings Bank.

2. Proof of your identity while dealing with us

2.1. What proofs of ID do we require?

Prior to entering into a specific contract and at any time during our contractual relation, we have the right to ask you to submit proof of your ID, generally by submitting your Identity Card or another proof of ID.

We may also ask you to provide further information and proofs as part of your meeting of the obligations, specifically those inherent in the applicable legal regulations. The provision of our services may be made subject to the submission of these proofs and information.

It is assumed that while entering into a specific contract, you act in your own benefit. You must inform us in the event that you act in somebody else's favour.

You are further obligated to inform us in the event that you meet the criteria for a political person as defined under the relevant money laundering legislation.

2.2. Can you authorise a proxy to act on your behalf while dealing with us?

You may authorise another person to act on your behalf, namely by furnishing written Powers of Attorney, which must expressly state the cases, in which your proxy is authorised to deal with us on your behalf. It is specifically in the interest of your security and protection of your financial means and services that we require that your signature under the Powers of Attorney be certified; alternatively, you may allow us to have your signature certified by our authorised sales agents. We recommend that you inform your proxy of all the terms subject to which they may deal with us as your representative.

The Powers of Attorney must contain the required essentials. For a template of the Powers of Attorney including the indication of the said essentials, go to our website at www.burinka.cz.

Legal entities must be represented by their statutory bodies in accordance with the relevant legal regulations.

If you act on behalf of a legal entity, you must submit information on the legal entity's ownership structure and the actual owner of the legal entity. We specifically have the right to request submission of an extract from the public register, documents attesting to the incorporation of the legal entity and its capacity to acquire rights and assume obligations, a valid proof of ID of yourself as the representative, or another person acting on behalf of the legal entity, an additional proof of ID or a document attesting to the authorisation to undertake business activity, but also the proof of origin and sources of the funds or related supporting documentation attesting to the purpose or nature of the transaction foreseen or executed.

2.3. What happens in the event of a limited legal capacity?

If you do not possess the capacity to act independently, the contract may be concluded by our proxy or guardian in line with the relevant legal regulations. If you cannot act independently as you are a minor, your building savings contract or any amendment thereto may be concluded by your legal proxy subject to the relevant legislation.

2.4. What purpose does a specimen signature serve?

We may enter into an agreement that for certain written orders we will review your identity or the identity of your representative against a specimen signature. .The specimen signature may only be executed on our form and generally in the presence of our authorised person. Otherwise, the authenticity of a specimen signature must be certified and the signatory officially identified.

For written instructions where we agree that the signature must correspond to the specimen signature, we check whether the signature in the instruction submitted corresponds to the specimen signature and whether it is in line with the agreed signing method. Where the signature appended to any instruction does not correspond to the specimen signature, or the agreed signing method, or if we are in doubts regarding its authenticity, we may reject to process the instruction. We will inform you of such a rejection to process an instruction forthwith. A new specimen signature shall start to apply on the first business day following its delivery. Please protect the specimen signature against misuse by any third party.

3. Mutual communication

3.1. How are we going to communicate with one another?

We will either use delivery services by a postal service operator or personal delivery for documents, or electronic communication means (email, Internet, phone, SMS, fax, electronic data report repositories, etc.). The specific rules of communication relating to specific services we are going to agree upon shall be as specified under individual contracts as well as other parts of the present General Terms and Conditions of the Building Savings Bank or the related Building Savings Bank Communications.

You will also have the option to sign the documents using electronic or biometric signatures provided we will offer the option, or where we so agree.

3.2. What is the Building Savings Bank Communication?

By signing the contract, you understand and agree that the Building Savings Bank Communication constitutes our binding form of communication, which further stipulates other conditions applicable to the contract and services provided. The Building Savings Bank Communication is used to communicate any information stipulated under contracts and General Terms and Conditions of the Building Savings Bank as well as any other provisions applicable to all building savings contracts during the effective term of the said Building Savings Bank Communication.

The current version of the General Terms and Conditions of the Building Savings Bank is available from our headquarters, at our website at www.burinka.cz as well as at the website of Česká spořitelna at www.csas.cz and from our authorised sales agents.

During our contractual relationship, we shall have the right to make any unilateral changes to the Building Savings Bank Communication or post new Building Savings Bank Communications. A Building Savings Bank Communication complements or details a certain contractual provision agreed between the two parties under the contract and shall have no effect on the remaining provisions thereunder. It is taken for granted you will be properly informed of any changes to the Building Savings Bank Communications at all times and the current version of the Building Savings Bank Communication will be published in an appropriate manner.

Where requested by the building savings legislation, the Building Savings Bank Communications shall further include the method and form of demonstrating the use of any state housing aids where the latter have been provided under the said legislation, and the method and form of demonstrating the use of the amounts saved and state aids provided for any other purposes as provided for under the building savings legislation.

3.3. Can we ask you for additional written confirmation?

Where we receive information or instructions from you sent to us via any other communication channels than those we have agreed upon, we shall have the right to ask you--for safety reasons and generally within three working days--to deliver, to our registered address, or via our authorised sales agents, such additional written information or instructions as has been agreed under the terms and conditions; otherwise we will not be able to consider them as effective.

3.4. Is our mutual cooperation going to be recorded somewhere?

Yes, it is, and the reason is our obligation to submit back to you the instructions we drew upon when executing our transactions. We have the right to record our mutual communication and to keep such records or documents on file, without prior notice, for the required period of time.

3.5. What language are we going to communicate in?

We use Czech in both mutual communication and in the contractual documentation. Use of other languages is only possible subject to our mutual agreement.

3.6. What form are the required documents supposed to take?

We have the right to demand that:

1. a copy of any original document you submit to us be officially certified or certified by one of our authorised sales representatives;
2. documents issued or certified aboard be provided with a special legalisation clause (apostille), or a superior verification method (superlegalised) unless an international agreement stipulates otherwise;
3. documents available in other language than Czech be submitted along with an official translation into Czech; if that is the case, we will only use such a certified translation;
4. your signature or the signature of your proxy, which was not executed before our authorised sales agent, be certified.

3.7. Which of your addresses are we going to use?

Unless you provide your correspondence address, we will be sending any communications and documents in writing to you to the address given in the respective contract, or to the last address you have communicated to us. Where necessary, however, we may also use another address known to us in order to effectuate the delivery. If you do not reside in the Czech Republic, you shall provide a correspondence address in the territory of the Czech Republic.

If you provide a telephone or fax number or email address or any other electronic communication address, we may also use them for delivering communications.

3.8 To what address can you send us your documents?

Please send any communications and documents in writing directly to our registered address, or that of our authorised sales agents unless we agree otherwise.

3.9. When will the correspondence be delivered?

We will regard any written correspondence sent to you as delivered if the same has been sent to you to the last address you have communicated to us. If the documents are returned to us as non-deliverable, we will regard them as delivered on the day they are returned to us.

Where we rely on a postal service operator to deliver any correspondence, the consignment shall be deemed delivered on the third day following the dispatch, or on the fifteenth day following the dispatch if the consignment is sent to an address in another country. The same applies if the correspondence is returned as non-deliverable.

Refusal to take the consignment over shall also have the legal effects of delivery. If not delivered, the sent consignments shall be regarded as delivered on the first day after their positing with the postal service operator.

Any documents you send to us shall take effects on the day of delivery to our registered address unless we have agreed on a different term beforehand.

3.10. How can you communicate any changes in your data to us?

Please make sure to communicate any changes to your identification data or other information as soon as possible.

In order for us to be able to provide our services in a proper manner, it essential that you specifically communicate the following information to us without undue delay:

1. changes to the data given in the contractual documentation concluded with us, and changes to any information related to compliance with the terms and conditions stipulated by the generally applicable legal regulations and our mutual contractual arrangements;
2. any changes to the proof of identity and data you have communicated to us under our mutual transactions;
3. expiry of any empowerments or other representations;
4. events, which imply risks to the transactions completed, such a loss or theft of personal ID documents, etc.;
5. any information or changes that may have an unfavourable effect on your ability to comply with the contractual obligations, such as initiation of insolvency proceedings or an enforcement procedure relating to your property;
6. any changes in your tax-paying obligations with regard to a certain state.

It is further your obligation to communicate to us any information that may have an effect on the compliance with the terms and conditions stipulated by the legislation regulating the award of state aids. Until we receive your communication, we shall assume that no changes have occurred and your entitlement to the state aid persists, where relevant.

We shall not be held accountable for any damage you may incur as a result of your failure to adhere to the above obligations.

3.11. What can be done to prevent errors in communication?

All your instructions or communications should be entirely unequivocal and clear. When in doubts, we reserve the right to demand clarification of your instruction or communication, which may however bring about a delay in its execution.

In order to prevent mutual misunderstandings, please review any report we may send to you without undue delay, including those delivered via the Internet banking interface or any other communication channel. Please review any account statements, payment confirmations, instructions received and executed and similar reports for correctness and completeness as soon as possible.

If either of us establishes a major fault in any communication, account statement, notification or any other information, they shall inform the other party forthwith. We will remove any identified faults without undue delay and inform you thereof. Please let us know as soon as possible if you do not receive from us an account statement or any other regular statement by the usual date.

3.12. How and when can you expect to receive your account statements?

We agreed that a statement would be sent after each transaction involving your account during the given month.

We will send to you or provide you with access to your bank statement indicating the amount on your account once a year, at the latest by 31 March of each year, with the given amount being the amount as at the last day of the preceding year.

If we do not receive any objections in writing within two months of sending or providing you with access to your building savings account statement/credit and bridging loan account statement, all the data in the statements shall be regarded as correct.

4. Concluding contracts

4.1. Where and how can you conclude a contract with us?

We usually close contracts upon receiving your proposal submitted using our form to Česká spořitelna branches, or to our sales agents authorised in writing, who work for us as our representatives, or to one of our authorised employees.

For your comfort, we further allow for certain contracts to be concluded over the Internet, on the phone, at a cash machine or by post. You will be provided with detailed information regarding the contract conclusion procedure while negotiating it with us.

Further, you may conclude certain contracts by making use of the method stipulated in our specific offer. For example, you may send a confirmation SMS to the dedicated telephone number, or log in to the Internet banking interface entering an access code provided to you by Česká spořitelna. We cannot accept any other offer reception method than those determined in our offer, or any other deviation from or addition to our offer, due to the method of processing the contracts to be concluded.

If the contract is entered into otherwise than in writing, we will regard as the valid content of the contract the offer and its acceptance given in accordance with the same, it being understood that any subsequent confirmation will have no effect on the content.

The contract is concluded as of the effective date of the proposal acceptance. We reserve the right to reject your proposal where justified.

The present General Terms and Conditions of the Building Savings Bank are part of our contractual relations.

5. Amendments to the General Terms and Conditions of the Building Savings Bank and Other Amendments

5.1. Can the present General Terms and Conditions of the Building Savings Bank be amended?

If the applicable legislation or other legal regulations or conditions in the markets for financial services change or any alterations occur in the technologies or organisational processes, and, with regard to the business policy of our building savings bank, we reserve the right to amend the present General Terms and Conditions of the Building Savings Bank, specifically with regard to the method of closing, amending and terminating contracts, communication rules, terms and conditions for specific services provided, requirements for means of proof provided to negotiate with us, and information obligations.

We will notify any amendments to your via a postal service operator, electronically, e.g. via Internet Banking, or disclose them to you using any other channel of mutual communication used. We will communicate any amendments to you at least two months before the amendment taking effects, and, unless you reject the amendment proposed within the above time limit and withdraw from the contract, the new wording shall become binding upon the two parties.

If you do not approve of the change, you may withdraw from the contract concerned in writing before the effective date of the amendment. The rights and obligations resulting out of the contract thus terminated, shall continue to be governed by the existing wording of the General Terms and Conditions of the Building Savings Bank until the expiry of the notice term.

It is agreed that if you do not terminate the contract by serving a notice, the latter shall be governed by the as amended General Terms and Conditions of the Building Savings Bank starting from the effective date of the amendment.

5.2. What else can change?

If you intend to make any changes to the commercial name of a product or service, identification, forms, operating hours of the branches, or any other changes that do not have an effect on our mutual rights and responsibilities, the change shall not be regarded as an amendment to the contract or the General Terms and Conditions of the Building Savings Bank. It is taken for granted, you will always be informed of any changes pending.

6. Other General Terms and Conditions Applicable to Our Services

6.1. Where can you find our prices?

By signing a contract, you understand and acknowledge the prices of our services are stipulated in the contract concerned and in the Building Savings Bank's Price List. Unless agreed otherwise under a specific contract, we will apply the prices given in the Building Savings Bank Price List applicable at the time of the service provision. Where any of the cases indicated under the Building Savings Bank's Price List applies, we may also charge you with third-party fees on top of our prices.

The current version of the Building Savings Bank's Price List is available from our headquarters, at our website at www.burinka.cz as well as at the website of Česká spořitelna at www.csas.cz and from our authorised sales agents.

During our contractual relationship, we shall have the right to unilaterally modify the Building Savings Bank's Price List unless stipulated otherwise under a specific contract. The purpose of a modification of the Building Savings Bank's Price List is to complement or detail a certain contractual provision agreed between the two parties under the contract and shall have no effect on the remaining provisions thereunder. It is taken for granted you will be properly informed of any modifications of the Building Savings Bank's Price List at all times and the current version of the Building Savings Bank's Price List will be published in an appropriate manner.

Both parties may claim interests on late payment in the event either of them is in default of payment of any owed amounts. Both parties may also apply the interests on late payment to any overdue interests.

We will debit the prices to your account when executing each transaction, however, at the latest when you cancel your account, and the prices shall be paid by being matched against your account balance.

You account management and administration fees shall be charged once a year, at the latest as of 31 December of the respective year, unless we opt for a different charging interval.

6.2. When can you turn to your branches?

We provide our services at all Česká spořitelna branches, during the working hours available at the respective branches as well as at Česká spořitelna website at www.csas.cz and from our other authorised sales representatives.

6.3. Can we refuse a transaction?

At times, the applicable legal regulations may task us with certain obligations we must adhere to in order to be able to execute your instruction or any other transaction. If that is the case, we will need your full cooperation, otherwise, we will have the right, or sometimes even be obligated to deny execution of the transaction. This specifically concerns the following cases:

1. if you refuse to provide your identification data and submit proof of ID or provide further information and proof as specified by the relevant provisions on money-laundering and financing of terrorism.
2. when in doubts regarding the authenticity, correctness, completeness or validity of documents and information submitted under the execution of a transaction, such as Powers of Attorney, or orders, or where the signature provided does not match the specimen signature;
3. when in doubts regarding your representative's authorisation to act on your behalf in any specific matter.

6.4. Can we match or settle mutual receivables and prices

It is agreed that we will have the right to match any of our payable receivables, receivables before maturity or monetary receivables barred, which result out of any contractual relationships established with our company against your payable receivables, or receivables before maturity from our company, including partial matching. The above right applies to any of your accounts.

You shall have an identical right to match any of your receivables from our company.

If you have undertaken to credit any payment to us (including payment of our price for the services provided or loan repayment instalments), we may settle any such payment due against any of your accounts and use the funds obtained from the account to cover such payments. You will be informed at all times if we take such an act.

6.5. Is it possible to assign the receivables or the contract?

You may not assign your rights or obligations pertaining to you as a party to a building savings scheme to any third parties. Without written consent, you may assign your entitlement to a loan resulting out of your building savings scheme to a person, whose housing needs are eligible for financing pursuant to the applicable building savings legislation as long as the other person is also a party to the same building savings scheme provided by our company as yourself. The loan established under the building savings scheme shall then be provided under the terms and conditions stipulated under the building savings contract of the person to which your loan entitlement under the building savings scheme has been assigned. Our right to assign any rights and obligations inherent in contracts concluded with our company or assign such receivables to companies pertaining to our financial group, or even to other entitles if you breach your contractual obligations, shall not require your prior consent.

Pledging or otherwise burdening the rights inherent in the contract for the benefit of any third parties is subject to our prior written consent, which we may make subject to certain conditions.

6.6. What is the situation like with tax deductions?

Where stipulated by the applicable legal regulations, we are obligated to effectuate tax deductions. If you are subject to a different scheme under the convention for the avoidance of double taxation, please submit the related documentation.

6.7. By what legal system are we governed?

Unless expressly agreed otherwise, all our contractual relationships governed by the present General Terms and Conditions of the Building Savings Bank shall be subject to the legal system of the Czech Republic. The same applies to the mutual negotiations conducive to the conclusion of contracts.

The material and local jurisdiction to hear and resolve any disputes regarding the rights and obligations inherent in mutual contracts, contractual legal relationships arising therefrom or related thereto shall rest exclusively with the courts of the Czech Republic, in line with the applicable legal regulations of the Czech Republic.

6.8. How can we lodge complaints?

We will appreciate it if you consult our customer line available at our website at www.burinka.cz or our authorised sales representative with your objections. If you do not find the proposed solution convenient, you have the option to request a non-committal assessment from the Ombudsman of the Česká spořitelna financial group. The Česká spořitelna Financial Group Ombudsman 's contact information is available at Česká spořitelna website at www.csas.cz.

Where a dispute arises between us with regard to an offer, provision or mediation of a consumer loan, and you do not find the proposed solution convenient, you may also consult the Czech Financial Arbitrator.

A complaint against our actions or our banking services may also be lodged to the Czech National Bank.

BUILDING SAVINGS

7. Building Savings and Building Savings Contract

7.1. What is building savings?

Based on a building savings contract, we will set up and administer your building savings deposit account. Building savings involve our receiving deposits from you, since upon entering into a building savings contract, you become party to a building savings scheme. If you meet the stipulated conditions, we will further provide you with a loan established under the building savings scheme.

We will apply an interest to your deposit as provided for under your building savings contract and mediate a state aid for you. The terms and conditions applicable to building savings shall be governed by the relevant building savings legislation.

7.2. What obligations do you have as a party to a building savings scheme?

As a party to a building savings scheme, you are specifically obligated to provide monetary deposits to your account, namely at such amounts and at such dates as have been agreed; to provide the required information and pay the price for the conclusion of the building savings contract within the time limit specified.

You are further obligated to pay account administration fees and prices for other services provided, as per the Building Savings Bank's Price List.

If your contract involves a state aid, you undertake to repay to us any state aid, which you may receive in violation of the terms and conditions stipulated by the relevant building savings legislation for its award, within the time limit to be determined in our written call for state aid repayment. For more detailed information, refer to your building savings contract and the present General Terms and Conditions of the Building Savings Bank.

7.3. What do "target amount" and "saving period" denote?

Target amount is the sum of deposits received at your account, the state aid provided, the building savings loan and the interests on the deposits and state aid. We must deduct an income tax on the interests. Your building savings contract stipulates a target amount given in the contract in full thousands of Czech Crowns. The target must comply with the minimum stipulated in the Building Savings Bank Communication.

The savings period starts on the day of conclusion of the building savings scheme and ends on the date of the building savings loan contact, no sooner, however, than upon the expiry of the term given in the Building Savings Bank Communication or upon payment of the balance at your account, and no later than on the day of termination of your building savings contract.

7.4. What do "amount saved" and "account balance" denote?

The amount saved denotes the sum of deposits received at your account, interests on the deposits and interests on the state aid deposits credited to your account. However, the amount saved is reduced by the income tax on the interests credited and our prices charged. The account balance consists of the state aid and the amount saved.

7.5. What does "building savings rate" denote?

The building savings rate is a sum of the parameters of the building savings scheme that have an effect on its course. We may determine different building savings rates for specific types of savings. All applicable building savings rates are published in the related Building Savings Bank Communications.

7.6. When and how much are you going to pay for the contract set up?

The price for the setting up of the building savings contract is stipulated in the Building Savings Bank Price List. The price must be paid immediately, at the latest within two months of the contract set-up. All payments you are going to credit to us will be preferentially matched against the actual amount due up to its full repayment.

If your contract is terminated, for any reason whatsoever, before the full repayment of the price for the contract set up, you will not be refunded the paid part of the price, but rather it will be used by our company as compensation for any expenses associated with the set-up and administration of the contract unless stipulated otherwise hereunder.

7.7. How can you save?

Save by regular monthly deposits that have been agreed under the building savings contract until the full target amount agreed is reached. In addition, you also have an option to credit extraordinary deposits to your account. However we reserve the right to refuse any extraordinary deposits credited to your account.

We may refuse extraordinary deposits, which, once credited to your account, along with the account balance, exceed the agreed target amount, as well as any payment credited to your account, which has already exceeded the agreed target amount.

If we do not refuse deposits credited to your account, where the account balance already exceeds the agreed target amount, we have the right not to apply the interests on that part of the balance, by which the agreed target amount is exceeded.

We may receive your deposits in the Czech national currency and regard them as paid on the day the same are credited to your account.

7.8. Can you increase or decrease the target amount?

On your request, we may enter into an agreement concerning a change in the target amount. In the event we agree to increase the target amount, you will pay the price at the amount stipulated in the Building Savings Bank's Price List. The price shall be matched against your account balance unless you choose to pay in a different way.

The paid price for the building savings contract set up, the price for the increase of the target amount or its part cannot be refunded even if the target is eventually reduced, unless stipulated otherwise hereunder.

If, upon expiry of the saving period, your account balance exceeds the target amount, we may match against your account balance an amount equivalent to the price that would have had to be paid if your target amount had been increased to the amount of your account balance as provided for under the present Article. The target amount shall not be deemed increased as a result of your payment of the price.

7.9. What are the interests applied to your deposits?

By signing the contract, you agree and acknowledge that the interests rate applied to your account balance corresponds to the interest rate stipulated under the building savings contract and that the interest rate applied is an annual interest rate, unless agreed otherwise. The method of interest rate application is given in the related Building Savings Communications.

We may apply the interests to your account balance until the agreed target amount is reached.

After six years from the date of the building savings contract and subject to compliance with the other terms and conditions stipulated by the building savings legislation, we may unilaterally and repeatedly change the interest rate applied to the deposits. The method of determining the interest rate is stipulated under the contract. We will inform you of our intention to apply this right.

The interest rate shall start to be applied to your deposits and other payments once the latter are credited to your account and end on the day preceding the payment of the account balance or its transfer to another account, or other method of disposing of the account. The interests shall be regularly credited to your account, at all times on 31 December of each respective calendar year and on the day of payment of the account balance. We may not pay the interests out apart.

8. Amendments to and Termination of the Building Savings Contract

8.1. How to amend the contract?

Any amendments to the contract will require our prior mutual agreement. Please submit your proposed amendments via our authorised representatives, using our amendment form sent to our registered address. A contract amendment agreement may only be set up after the end of the saving period.

In the event any changes are made to the target amount or the building savings rate agreed, it is further possible to suspend the provision of the building savings loan. Your amended building savings contract may only be reviewed with regard to the possibility of awarding a building savings loan after the expiry of the time limit stipulated in the Building Savings Bank Communication.

A change in the requested state aid may only be made once during each calendar year, by submitting a declaration using our form.

During the contractual relationship, we have the right to amend the contractual conditions in your benefit or act in your favour.

8.2. How is the contracted terminated?

The building savings contract may be terminated for convenience, upon payment of the loan provided, after the death of a natural person, upon dissolution or liquidation of a legal entity and upon any other events provided for under the applicable legal regulations. The right to terminate the contract by serving a notice or withdrawal is regulated under the present General Terms and Conditions of the Building Savings Bank, or under the specific contracts as relevant.

In the event of a death, the procedure stipulated under the relevant legal regulations is applied.

8.3. Can you terminate the contract by serving a notice?

You may terminate the building savings contract at any time by serving notice, even without indicating the cause, unless we have entered into a building savings loan contract, or a bridge and building savings loan contract. The notice must be served using our form completed with the required data and your proof of ID must be provided as required under the present General Terms and Conditions of the Building Savings Bank.

Your notice or proposed termination of the building savings contract must contain your instruction as to how your account balance is to be paid out. Unless you provide such an instruction, the balance may be transferred to an account previously communicated to us, sent to one of our branches for payout or to your address as previously communicated to us, in the form of a voucher. Payment of the balance may also be suspended until such time as we receive your instruction, in which case, we will not apply any interest to the balance following termination of the building savings contract.

If you intend to terminate the building savings contract after the conditions stipulated under the relevant building savings legislation applicable to the state aid provided, and at once, are not interested in obtaining a building savings loan, you should also submit a notice.

It is impossible to withdraw a part of the deposit only and based on your notice, the full account balance must be paid out at all times.

8.4. Can we terminate the contract by serving a notice?

We can also terminate the building savings contract by serving a notice, specifically for the following causes:

1. due to the reasons inherent in the relevant legal regulations or in the event that you breach an obligation inherent in the contract concluded between us, or resulting out of the General Terms and Conditions of the Building Savings Bank;
2. in the event you fail to pay the price for the contract at its full amount within two months of the contract date;
3. where your account balance exceeds the target amount agreed, after you have received our written notice to that effect;
4. if you are in default of payment of the deposits agreed under the building savings contract for more than six months;
5. six years after the building savings contract date if you refuse the offer of a building savings loan;
6. if you breach the General Terms and Conditions of the Building Savings Bank in such a principal manner that you cause the building savings contract to lose its legal purpose, for which it was concluded;
7. if you misuse the buildings savings contract in a manner, which is inconsistent with the legal purpose of the building savings scheme;
8. where the continued contractual relationship with you would or could put our good reputation in risk or would interfere with our legitimate interests.

8.5. How long is the notice term?

By signing the contract, you acknowledge and agree that the notice term binding upon the two contracting parties is three months, starting on the first day of the calendar month following delivery of the notice to the other party, and ending on the last day of the third calendar month following delivery of the notice.

8.6. What procedure must be followed for submitting a notice?

If you serve a notice, the amount saved shall be transferred to you using the method stipulated under the present General Terms and Conditions of the Building Savings Bank as well as the conditions stipulated under the relevant payment system legislation. If the conditions stipulated by the building savings act are met, the state aid registered on your account will be paid out to you on the very same date.

You, as the client, as well as we, as the provider, may also recall any notice served provided the other party agrees to it in writing and provided we have not initiated the account balance payment procedure yet.

8.7. Can you terminate the contract immediately after concluding it?

If, following a careful review of a just concluded building savings contract concluded with us, you have second thoughts about the contract, you may withdraw from it within thirty days of the contract date with immediate effects and with no sanctions, unless we have concluded a bridge loan contract or a building savings loan contract. If you choose to terminate the contract as above, we will settle all our mutual debts, and even the price for the contract, or a part thereof, will be refunded to you.

8.8. Can you withdraw from a contract concluded remotely or outside regular business premises?

You may withdraw from a building savings contract that has been concluded remotely or outside of regular business premises within fourteen days of the date of the contract.

8.9. Can we withdraw from the contract?

We may withdraw from a building savings contract:

1. if the continued contractual relationship with your would or could put our good reputation in risk or would interfere with our legitimate interests.
2. if you fail to pay the price for the contract at its full amount within two months of the contract date;
3. in the event there is a legal regulation which makes us obligated to terminate the contractual relationship with you, or if you fail to adhere to your obligations inherent in any relevant legal regulations or contractual arrangements between us in a material manner;
4. in the case of enforcement via an order to satisfy your payables using your account balance or via distraint;
5. in the event you are declared a bankrupt.

Withdrawal from the building savings contract by you, as the client, or us, as the provider, shall have no effect whatsoever on our right to any agreed contractual penalty, liquidated damages resulting out of your breach of the building savings contract, or implied by the relevant legal regulations, to the price for any services already provided, and to interests on late payment relating to our receivables established by virtue of the building savings contract withdrawn from.

BUILDING SAVINGS LOAN

9. Building savings loan and its provision

9.1. What is a building savings loan?

The building savings loan is a special purpose loan we are going to propose to you if you meet the legal and contractual conditions. It can be provided to you with a view to covering your housing needs or to cover any other purposes stipulated by the relevant legislation. If we propose the loan to you before you meet the conditions stipulated by the building savings legislation for the payment of the state aid, you are also obligated to use the amount saved and the state aid to finance your housing needs.

We may further provide you with a building savings loan to finance the housing needs of persons stipulated by the building savings legislation.

The housing unit, for which we are going to provide you with a building savings loan, must be located in the Czech Republic. Housing needs are defined by the building savings legislation.

We may only provide you with a building savings loan up to the maximum amount equivalent to the difference between the target amount and your account balance. Your account balance shall be reviewed as of the day of delivery of the building savings loan contract to your registered address.

9.2. Under what condition do we provide building savings loans?

A building savings loan may be provided to you if you meet all of the conditions below:

1. the required period of time stipulated in the Building Savings Bank Communication has lapsed from the date of your contract;
2. as of the review date, your account balance reaches the minimum value expressed in per cent of the target amount; the value is given in the related Building Savings Bank Communication;
3. as of the review date, the score of your building savings contract has reached the level defined in the Building Savings Bank Communication.

Building savings contracts are reviewed for meeting the conditions above once a month, at all times with regard to the specific month, on the last day of the month.

The score is determined by dividing the sum of the account balance and the interest factor by a value equivalent to four thousands of the target amount. The account balance consists of the amount deposited on the account plus the uncredited interests. The method of calculation of the interest factor is given under the related Building Savings Bank Communication.

The interests you are entitled to as of the review date and which are yet to be credited to your account are regarded as interests already credited to your account for the purposes of determining the score.

9.3. How do you find out about meeting the conditions?

We will inform you if you meet the conditions for the provision of a building saving loan using the method stipulated under the present General Terms and Conditions of the Building Savings Bank, namely in its part relating to our communication.

If, within the time limit stipulated in the related Building Savings Bank Communication, you fail to submit a written application for the building savings bank, your entitlement shall be deemed expired. However, you will be able to apply in writing for the building savings loan again in writing. We will include your application under the earliest review round following delivery of your application to our registered address.

9.4. When do we provide the loan?

The specific conditions applying to the provision of the building savings loan are stipulated under the building savings loan contract.

If you decide to make use of the building savings loan proposed, we will enter into a building savings loan contract with you if, within the time limit stipulated under the related Building Savings Bank Communication, or under a firm offer, you submit a written application for the loan and if you demonstrate and provide proof for your ability to repay the loan, the purpose of use of the building savings loan as stipulated under the building savings legislation, and if you provide the required security, where relevant.

If you meet all of the above conditions, we are ready to draft a building savings loan contract within two months of submission of all background documentation required.

With a view to entering into a building savings loan contract, we are further ready to provide you with a reservation period, during which we will make it possible for you to enter into a building savings loan contract at any time. The reservation period for the building savings loan contract shall start on the pay date of the account balance and its duration is defined under the related Building Savings Bank Communication.

10. Conditions Applicable to the Building Savings Loan

10.1. How can you secure your loan?

In order for us to ensure repayment of the building savings loan provided to you, we may request that you loan be secured by various securing instruments as provided for under the relevant legal regulations. The specific securing instruments are stipulated under the building savings loan contract.

As security for your debt resulting out of the building savings loan contract, we may make the building savings loan contract subject to your obligation to take out a life insurance policy, or a loan insurance policy.

If a movable or immovable asset is subject to a lien, we may make the building savings loan contract subject to an insurance policy taken out for the asset, or require the same as an additional securing instrument, during the entire term of the lien.

Any receivables resulting out of the insurance policies taken out with a view to securing your debt, must be pledged in our favour in order for our receivables out of the building savings loan contract to be duly secured.

10.2. What are the interests applied to the loan?

The interests applied to building savings loans are generally equivalent to the annual interest rates stipulated in your building savings contract and your building savings loan contract, or, where applicable, in your bridge and building savings loan contract.

The interests paid are applied to the outstanding amount. The interests start to be applied to the building savings loan on the day of drawdown of the loan or a part thereof.

10.3. How can you repay the loan?

The conditions applying to the repayment of the building savings loan shall be stipulated under the building savings loan contract. The building savings loan repayment instalments include the interests on the loan and any prices indicated in the Building Savings Bank's Price List.

The method of determination and the minimum monthly building savings loan instalments may be stipulated under the related Building Savings Bank Communication.

You may provide an extraordinary building savings loan instalment beyond the scope of the regular instalments agreed under the building savings loan contract subject to the conditions and terms stipulated under your building savings loan contract.

If you breach any of the provisions under the building savings loan contract in a material way, we may request immediate repayment of the full loan amount.

11. Amendments to and Termination of the Building Savings Loan

11.1. Can you amend the loan contract?

Any amendments to the building savings loan contract will require a prior written agreement between us.

The conditions and procedures applicable to the amendments to the building savings loan contract, including the definition of any rights and obligations shall be laid down under the building savings loan contract.

11.2. Can we terminate the contract?

The conditions and procedures applicable to the termination of the building savings loan contract, including the definition of any rights and obligations shall be laid down under the building savings loan contract.

In the cases stipulated under the building savings loan contract or in any other cases stipulated by the legal regulations, we shall have the right to withdraw from the building savings loan contract and request immediate repayment of the building savings loan provided, including any state aid and interests paid as well as any payable sanctions, expenses and prices associated with the building savings loan.

Withdrawal from the building savings loan contract shall have no effect whatsoever on our right to any agreed contractual penalties, liquidated damages resulting out of your breach of the building savings loan contract, or implied by the relevant legal regulations, to the price for any services already provided, and to the agreed interests and interests on late payment payment relating to any receivables established by virtue of the building savings loan contract withdrawn from.

12. Other Conditions Applicable to the Building Savings Loan

12.1. What are the other conditions applicable to the loan?

The other conditions are stipulated under your building savings loan contract.

Our mutual legal relations relating to the building savings loan shall be reasonably governed by the previous provisions of the present General Terms and Conditions of the Building Savings Bank unless we agree otherwise in writing.

BRIDGE LOAN

13.1. What is a bridge loan?

If you are yet to meet the conditions for the provision of the building savings loan, we may provide you with a bridge loan to address your housing needs. The bridge loan provided may be up to the target amount.

You may apply for the bridge loan in writing, and the bridge loan contract and the building savings loan contract are concluded in writing at all times.

The specific conditions applying to the provision of a bridge loan are subject to the relevant contractual documentation executed between you as the client and us as the provider.

Our mutual legal relations relating to the bridge loan shall be reasonably governed by the previous provisions of the present General Terms and Conditions of the Building Savings Bank unless we agree otherwise in writing.

CONCLUSION

14.1. How are your funds insured?

As stipulated by the law, your funds will be insured in the Czech national currency, including any interests accumulated on your accounts.

Our building savings bank is a party to a deposit insurance system operated by the Deposit Insurance Fund. If we become unable to pay your money out, the Deposit Insurance Fund shall compensate you for your insured deposits at designated payout sites. The amount compensated is governed by the law and is stipulated under the relevant Building Savings Bank Communication.

14.2. To what supervision are we subject?

As a bank, we are subject to the bank supervision by the Czech National Bank. The responsibility for the public monitoring of compliance with the conditions applicable to the state aid provision relating to building savings rests with the Ministry of Finance.

14.3. What is the procedure to follow if our banking licence is withdrawn?

In the event our banking licence is withdrawn, or Stavební spořitelna České pojišťovny ceases to exist, you will be subject to the procedure stipulated under the applicable legal regulations.

14.4. What is the procedure to follow in the event a part of the present terms and conditions is found invalid?

Should any part of the present General Terms and Conditions of the Building Savings Bank become invalid or unenforceable, for any reason whatsoever, and if it may be replaced by a similar provision of the applicable law, the invalid part shall be replaced by the relevant provision of the applicable law. Such an amendment to the General Terms and Conditions of the Building Savings Bank shall not be regarded as material, and indeed shall not be regarded as an amendment to the General Terms and Conditions of the Building Savings Bank, which requires application of the procedure stipulated under the present General Terms and Conditions of the Building Savings Bank.

14.5. What is the date of coming into force of the present terms and conditions?

The General Terms and Conditions of the Building Savings Bank were approved by Ministry of Finance Decision of 23 October 2013, ref. MF-105535/2013/36, with effects from 1. 1. 2014.

The General Terms and Conditions of the Building Savings Bank shall start to apply in relation to natural and legal entities from 1 January 2014.

It is hereby agreed that the rights and obligations established under the contracts for our services, which are subject to the General Terms and Conditions of the Building Savings Bank, shall be governed by Act No 89/2012 Coll., Commercial Code, starting from 1 January 2014.

If you hold any contract covered by the General Terms and Conditions, concluded before the date of coming into force of the present General Terms and Conditions of the Building Savings Bank (1 January 2014), we may agree in writing that your contract shall be governed by the present General Terms and Conditions of the Building Savings Bank.

Stavební spořitelna České spořitelny, a. s.

Ing. Jiří Plíšek, MBA, v. r.
Chairman of the Board

Ing. Jan Diviš, v. r.
Vice Chairman of the Board